New Delhi, March 15.
In a huge relief for the Tata group and the airlines industry, the Delhi High Court has disposed of a petition filed by Dr Subramanium Swamy almost a decade ago against FIPB approval granted to the low-cost airlines Air Asia.
The writ petition had challenged the approval granted to Air Asia on the ground that the FDI Policy, as it existed then, did not permit foreign shareholding in a greenfield airline carrier. The Federation of Indian Airlines also filed a similar writ petition the next year, 2014.
The High Court had refused to stay operations of Air Asia in 2014 on the ground that due approvals were granted by the DGCA, Competition Commission of India etc.
The plea for staying the operations of the airline carriers was also rejected twice by the Supreme Court in 2014 and 2016.
Air Asia is now a wholly-owned subsidiary of Air India Limited, which is now owned by Tata Sons Limited, namely Indian entities. The issue of foreign shareholding therefore no longer existed and due approvals had been granted.
Accordingly, the Federation of Indian Airlines had in Jan 2023. also withdrawn its writ petition challenging the grant of FIPB approval to Air Asia.
When these developments were drawn to the High court’s attention, the High Court on March 13 disposed of the case on the ground that it was now purely academic. The bench comprised the High Court Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad.
“In view of the fact that there is no foreign investment as of today, the prayers made in the writ petition have become purely academic. The petitioner, who appears in person, has stated that he is no longer interested in pursuing the writ petition…. writ petition stands disposed of.”
Subramanium Swamy appeared in person before the High Court. Air Asia was represented by Rajiv Nayar, Senior Advocate, Jaiveer Shergill and the team from Karanjawala & Co. led by Ms. Ruby Singh Ahuja, Senior Partner and Ishan Gaur, Principal Associate, Varun Khanna, Ms. Aakriti Vohra, Akshay Agarwal, Senior Associates, and Vasu Singh, Associate.
